Stamp duty hike likely to fund irrigation projects

  • 26/08/2008

  • Daily News Analysis (Mumbai)

The state government is contemplating hiking stamp duty to generate revenue to complete irrigation projects across Maharashtra which is reeling under severe water and agriculture crises. What has compounded the problems for the state is the long dry spell because of delayed monsoon which led to a loss of kharif crop last month. Deputy chief minister RR Patil said, "We will require Rs44,000 crore to complete all irrigation projects in the state.' He said that a sub-committee, headed by him, had studied the problems of water crisis and suggested that Re1 on stamp duty should be imposed in Western Maharashtra, North Maharashtra and Konkan region to generate more revenue.' However, the matter is under consideration with the ministry of finance. According to finance ministry officials, "The state government cannot hike the stamp duty in a few districts. It will have to be a policy decision for the entire state. However, there are recommendations which are being seriously considered.' This year, the government has made budgetary provisions for Rs8,000 crore for irrigation projects. Earlier, there was a school of thought that government could raise Rs16,000 crore through public bonds but the idea was dropped. Earlier, water resources minister Ajit Pawar has cautioned against water crisis in the state in absence of long spell of rains which led to drought-like situation across Maharashtra. "The water shortage remains a challenge not only in rural but also urban Maharashtra,' he said. A member of the state planning commission said, "It is unfortunate that despite huge monetary allocations, the demand in irrigation department is rising every year. What is shocking is that despite expenditure the number of talukas covered under drought also show a sharp rise. Today, 50% of the state is covered under drought.' He said, " It shows faulty planning and mismanagement of funds within the administration.'